Anthropic files for IPO with $1.4 trillion valuation

Anthropic, the developer of the Claude chatbot, has filed to go public with a target valuation of $1.4 trillion. The company launched its investor roadshow on Tuesday, Nov. 10, and aims to list shares on the stock market next week. This debut represents one of the largest initial public offerings in recent history.

The firm plans to sell 825 million shares at a price range of $70 to $78 each. This pricing structure sets the company's value at up to $1.4 trillion when potential shares are included. The figure is lower than earlier projections that placed the valuation between $1.5 trillion and $2 trillion. Investors have expressed concern over the company's high infrastructure costs and recent volatility in the AI sector.

Anthropic has secured $26 billion in a separate private placement. Major technology companies, including Google, Nvidia, Microsoft, and AMD, backed this round. The company reported revenue of $17 billion in the third quarter, a sharp increase from $1.4 billion a year earlier. Net losses have narrowed during this period.

The company stated on Tuesday that it is on pace to generate approximately $81 billion in annual revenue. This figure is $10 billion higher than the estimate provided one month prior. Anthropic attributes this growth to strong demand for Claude in industries such as healthcare, financial services, and legal services.

To meet this demand, Anthropic has committed nearly $900 billion to computing costs. Partners including Amazon and Google are involved in this expenditure. The company is betting heavily on continued consumer and business interest in its AI products to justify these financial commitments.

The IPO arrives amid a shifting political climate in the United States. Democrats won control of both chambers of Congress in the midterm elections last week. Lawmakers in the new House and Senate have raised the possibility of increased regulation for AI companies. They have also proposed new restrictions on the construction of data centers.

AI stocks declined following the elections. The Nasdaq fell 5.5 percent on Thursday, marking its largest one-day drop in more than a year. The selloff was driven partly by declines at Nvidia. Markets have recovered some of those losses, though the Nasdaq dipped slightly below 1 percent on Tuesday.